Cuomo Says Website to Help Insurance Beneficiaries Get Funds

April 23 (Bloomberg) -- New York Governor Andrew Cuomo said
a new website will help life-insurance beneficiaries learn about
funds that they are owed after a state review of unpaid payments
resulted in awards of more than $200 million.

“Something must be done to make sure families across New
York receive the life insurance benefits that they are due,”
Cuomo said today in a statement. “A new website will help
families search for lost or forgotten policies.”

Life insurers have faced increased scrutiny from regulators
in Florida, California and other states over unpaid benefits.
New York’s insurance regulator last year ordered firms to use
current Social Security Administration data to determine when
death payments are due.

An investigation by the state’s Department of Financial
Services into instances where insured parties died and
beneficiaries didn’t file claims has led to more than 32,000
payments totaling $262.2 million, according to the statement.
That is up from the $52.6 million that had been distributed to
almost 8,000 beneficiaries when the regulator provided an update
in December.

Insurers are still investigating more than 445,000
potential matches for unpaid claims, the regulator said today.
Consumers can use an online tool at NYPolicyFinder.com to locate
life insurance policies and annuities that have been lost or
misplaced, according to the statement.

MetLife Inc., the largest U.S. life insurer, took a $117
million charge in the third quarter related to unpaid death
benefits, while American International Group Inc. has added to
reserves after changing its process for determining when
policyholders die.

Life insurers are generally required to pay claims after
being notified of a policyholder’s death and receiving a valid
death certificate. If insurance companies aren’t notified, they
usually are required to hold the funds until the insured would
be about 100 years old, plus an additional three or five years,
depending on the jurisdiction, before turning the money over to
the state as unclaimed property.